CNH prices tender for 7 7/8% notes, oversubscribed as of early date

By Susanna Moon

Chicago, Aug. 18 – CNH Industrial NV said investors had tendered $830,459,000 of the $1.5 billion 7 7/8% guaranteed senior notes due 2017 issued by subsidiary Case New Holland Industrial Inc.

The tally is as of 5 p.m. ET on Aug. 17, the early tender date.

CNH expects to purchase the tendered notes using a proration factor of 0.54225125, with settlement on Aug. 22, according to a company update.

As announced Aug. 4, the company was tendering for up to $450 million of the 7 7/8% notes until 11:59 p.m. ET on Sept. 1.

Because the offer has been oversubscribed by the early deadline, however, CNH said it will accept no more tendered notes for purchase after the early deadline.

Tendered notes may no longer be withdrawn, as of the early deadline.

Pricing was set at 11 a.m. ET on Aug. 18 using the yield to maturity of the bid-side price of the 1% U.S. Treasury note due Dec. 31, 2017 plus 75 basis points for a reference yield of 0.70%, according to a separate announcement on Thursday.

The total purchase price is $1,080.84 for each $1,000 principal amount, including a $30.00 early tender premium per $1,000 of notes tendered by the early deadline.

Holders also will receive accrued interest up to but excluding the settlement date.

The tender offer is contingent on the company obtaining financing.

CNH Industrial priced $600 million of seven-year senior bullet notes at par to yield 4˝% on Aug. 4, as previously reported.

The company said it was making the tender offer to manage the group’s financial liabilities and cost of debt financing.

The dealer managers are Barclays (212 528-7581, 800 438-3242, +44 0 20 3134 8515 or Liability.Management@barclays.com), Citigroup Global Markets Ltd. (212 723-6106, 800 558-3745, +44-20-7986-8969 or liabilitymanagement.europe@citi.com), J.P. Morgan Securities LLC (866 834-4666 or 212 834-3424) and Societe Generale (+44 20 7676 7579, 212 278-5769, 855 881-2108 or liability.management@sgcib.com).

The information agent is Global Bondholder Services Corp. (Fax 212 430-3775, 212 430-3774 or 866 807-2200).

CNH is a Basildon, England, manufacturer of machinery and vehicles.

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